Which of the Following Best Describes Prestige Pricing

question 74

Multiple Choice

Which of the following best describes prestige pricing?

• A)It uses high prices to promote a high-quality product.
• B)It is the practice of marking up prices by 100 percent.
• C)It is also called leader pricing.
• D)It emphasizes the monetary nature of price.

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Definitions:

Segmenting Markets

The process of dividing a target market into smaller, more defined categories based on characteristics such as demographics, needs, priorities, common interests, and other psychographic or behavioral criteria.

Global Segmentation

Segmentation that identifies a group of consumers with common needs and wants that spans the entire globe.

Market Segments

The groups of consumers who have shared characteristics and similar product needs.

VALS Framework

A psychographic tool that classifies consumers into eight categories based on their responses to a questionnaire, used for market segmentation.